The tax department has extended deadline for filing income tax returns to 31 December from 30 September. If a taxpayer didn’t file her ITR on or before 31 July and has outstanding tax to be paid, she will be charged a monthly interest of 1% on the outstanding tax amount.The income tax department, last week, extended the deadline for filing income tax returns to 31 December from 30 September. However, there is no relief on interest penalty for taxpayers who have an outstanding tax liability above ₹1 lakh and are late in filing their returns.
On 9 September, a notification by the Central Board of Direct Taxes (CBDT) said “the extension of the dates … shall not apply to explanation 1 to section 234A of the (IT) Act.”What this means is that if a taxpayer didn’t file her ITR on or before 31 July and has outstanding tax to be paid to the IT department, under section 234A she will be charged a monthly interest of 1% on the outstanding tax amount. This penalty will be levied only on those whose outstanding tax is above ₹1 lakh after removing advance tax or TDS that might have already been paid.Hence, it is advised that you pay your pending tax, if any, at the earliest.
“It’s advisable to compute tax immediately even if ITR may be filed later. This may help us in saving interest. After paying the outstanding tax, which is done through net banking, one can file ITR anytime before 31 December,”. This move does not impact small taxpayers who are likely to have tax liability under ₹1 lakh.
Advice for contact :
VidyaSunil and Associates
Web : www.vidyasunilassociates.com
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